Refund allowable on Services not listed as Specified Services approved by Approval Committee under SEZ Act: CESTAT [Read Order]

The Customs, Excise and Service Tax Appellate Tribunal (CESTAT), Ahmedabad bench has held that the refund is allowable in respect of the services not listed as specified services approved by the Approval Committee under the SEZ Act.

The appellants, INTAS Pharmaceuticals Ltd are located in SEZ and received some services for authorised operations. In terms of Notification No.12/2013-ST, the appellants claimed refund of the service tax paid by the service provider. They approached the Tribunal contending that some amount of refund has been sanctioned and balance rejected on the ground that some services were not identified as specified services by the Approval Committee.

The assessee further contended that section 51 of the SEZ Act provides that the provisions of the act would have overriding effect on any other law for the time being in force. They pointed out that Rule 31 of the SEZ Rules, 2006 grants exemption from service tax on admissible services rendered to the Developer or an unit by way of any service provider for the authorized operations in SEZ.

The single bench of the CESTAT comprising Mr. Raju Member (Technical) observed that in the appellant’s own case in an earlier case, the benefit of refund has been allowed in respect of services not listed as a specified services approved by the approval committee.

“In view of the above, I find that the appellants are entitle to refund in respect of services received by them for the authorized operations even if, such services are not listed as a specified services in the list approved by the Approval Committee,” the Tribunal said.

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